Colorado Auto Dealer Bond$50,000 AID Requirement

Colorado auto dealer bonds ($50,000) typically cost $500-$5,000 annually based on credit. Excellent credit (750+) pays $500-$1,000 (1-2%). Good credit (680-749) costs $1,000-$2,000 (2-4%). Fair credit (620-679) ranges $2,000-$3,500 (4-7%). Lower credit may pay up to 10%.

Colorado has strict financial requirements including minimum $100,000 net worth and a Vantage Credit Score of 701 or higher (Experian report required). Applicants must also pass a pre-licensing education course and mastery exam.

Dealers who sell only small utility trailers weighing less than 2,000 pounds need only a $5,000 bond instead of the standard $50,000, per C.R.S. 44-20-112.

Managing officers or general partners must pass a mastery exam covering Colorado dealer laws and regulations. A pre-licensing education certificate is required unless you held a relevant license within the past 3 years.

Per SB 20-140, the Colorado bond reimburses retail consumers for losses caused by fraud or fraud-related violations. Recovery requires a final agency order from the Motor Vehicle Dealer Board with a finding of fraud. Aggregate liability is limited to the bond amount.

Colorado requires Statement of Financial Condition (DR 2114), minimum 12 months of bank statements, proof of real property ownership, vehicle valuations (NADA, Kelly Blue Book), and a comprehensive business plan including staffing, hours, costs, projections, and financing.

The Colorado Auto Industry Division (AID), part of the Department of Revenue Specialized Business Group, regulates dealers. The Colorado Motor Vehicle Dealer Board is the state licensing authority with power to issue or deny licenses.

Felony convictions involving fraud, theft, or motor vehicle crimes within three years are disqualifying. Applicants cannot simultaneously hold wholesaler and motor vehicle salesperson licenses, and wholesalers cannot employ salespeople.

Contact the Auto Industry Division at (303) 205-5604 or email dor_dealers@state.co.us. The division handles all dealer licensing under Title 44, Article 20 of the Colorado Revised Statutes.